❄️💸Federal Funding Flashpoint: $15B NIH Grants Frozen Then Freed Overnight
🎯🔧 Gene Editing Goes Autonomous: CRISPR-GPT Achieves 80%+ Success
🤖🌈 Post-Humira Play: AbbVie Targets AI-Designed Neuroplastogens
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Federal research in crosshairs as OMB temporarily freezes $15B in NIH grants before rapid reversal
The Trump administration's Office of Management and Budget temporarily halted NIH from issuing any new research grants Tuesday afternoon—affecting approximately $15 billion in federal funding—before reversing course less than 24 hours later following intense Congressional pushback. OMB Director Russell Vought, who called NIH an "agency that needs dramatic overhaul," imposed the freeze via internal memo permitting only salaries and administrative expenses. The move prompted immediate bipartisan resistance, including from 14 Republican senators who had urged allowing NIH to spend its full appropriated budget. Sen. Patty Murray (D-WA) accused the administration of trying to "destroy the NIH, which has long been the envy of the world." The brief freeze represents broader Trump administration efforts to restructure NIH, including ~1,200 workforce cuts and a proposed 40% budget reduction from $48B to $27.5B. While quickly reversed, the episode signals ongoing political volatility around the world's largest public funder of biomedical research—with anonymous NIH officials reporting grants staff are "barely holding it together."
CRISPR-GPT for Agentic Automation of Gene Editing Experiments
CRISPR-GPT, a new multi-agent system built on GPT-4o and fine-tuned with 11 years of scientific forum chatter, promises fully automated support for CRISPR experiments including picking the right Cas system and analyzing NGS data. The model was developed by researchers at Stanford, Princeton, and Berkeley and acts as an AI co-pilot that breaks down user prompts into stepwise protocols using domain-tuned LLM reasoning and integrated tools like Primer3, CRISPResso2, and CRISPick. In wet-lab demos, it enabled junior researchers with zero CRISPR experience to pull off complex gene knockouts and epigenetic activations with >80% editing efficiency, all on the first try. Its Q&A mode outperforms general LLMs on expert benchmarks, and a built-in ethics layer flags risky human genome edits before they happen. Github here.
Behind the Deal: AbbVie Eyes Gilgamesh in $1B+ Psychedelic Bet
AbbVie is reportedly in advanced talks to acquire Gilgamesh Pharmaceuticals for over $1B, marking its boldest move yet into next-generation neuropsychiatry. The two companies already inked a licensing deal in May—worth up to $1.95B in milestones—focused on Gilgamesh’s non-hallucinogenic neuroplastogens, a new class of small molecules that aim to rewire the brain without triggering a trip.The target is early-stage, but strategically timed: AbbVie is aggressively rebuilding its pipeline post-Humira, and depression remains a multibillion-dollar market starved of innovation. Gilgamesh’s lead assets—GM-1020 (NMDA receptor modulator) and GM-2505 (5-HT2A agonist)—are designed for faster, safer onset than ketamine or psychedelics, with first efficacy readouts expected in 2026.
Less obvious but equally important: Gilgamesh leans heavily on machine learning for compound design and high-throughput screening. This aligns with AbbVie’s growing interest in machine learning-driven drug development. If the deal closes, it would signal that AI-native drug discovery startups with novel neuro targets are now credible M&A candidates—not just licensing partners.
CBER director Vinay Prasad abruptly departs FDA after gene therapy deaths and political pressure
Dr. Vinay Prasad departed his role as FDA's Center for Biologics Evaluation and Research (CBER) director after less than three months, citing family reasons but amid significant political controversy. The departure followed a whiplash-inducing sequence where FDA initially requested Sarepta halt shipments of its Duchenne muscular dystrophy gene therapy Elevidys after three patient deaths, then reversed course Monday afternoon following pressure from Sen. Ron Johnson. Prasad—known for criticizing accelerated approvals based on surrogate endpoints—had been labeled a "leftist saboteur" by conservative activist Laura Loomer and "Bernie Sanders acolyte in MAHA drag" by the Wall Street Journal. His exit signals potential shifts in FDA's regulatory approach under the Trump administration, with analysts suggesting more permissive attitudes toward accelerated approvals. George Tidmarsh, newly appointed CDER leader, will serve as acting CBER director. Sarepta shares jumped over 10% in premarket trading following the news, reflecting market expectations of a more industry-friendly regulatory environment.
Parker Institute spinout Dispatch Bio raises $216M to develop one CAR-T for all solid tumors
Dispatch Bio officially launched with $216 million to develop a universal immunotherapy for solid tumors—which represent ~90% of all cancers worldwide. The company's proprietary "Flare" platform uses a two-component approach: a viral vector delivers the Flare antigen to tag tumor cells while simultaneously breaking down the immunosuppressive microenvironment, followed by next-generation CAR-T cells that recognize these tagged cells. Founded through collaboration between ARCH Venture Partners and the Parker Institute for Cancer Immunotherapy, Dispatch brings together CAR-T pioneer Carl June (Penn), Chris Garcia (Stanford), and other luminaries. CEO Sabah Oney (formerly Alector, ARCH venture partner) is betting that going universal rather than precision could finally crack the solid tumor challenge that has stymied CAR-T therapies. The company plans to enter clinical trials in 2026, initially targeting patients with "no real option" after standard treatments before potentially expanding to lung, breast, and colorectal cancers.
Big Pharma's new playbook: BMS spins out autoimmune portfolio into $300M Bain-backed venture
Bristol Myers Squibb spun out five immunology assets into a new, as-yet-unnamed company backed by $300 million from Bain Capital—part of BMS's expanded $2 billion cost-cutting initiative. The spinout includes afimetoran (oral TLR7/8 inhibitor in Phase 2 for lupus), the discontinued-then-revived TYK2 inhibitor BMS-986322, and three Phase 1-ready biologics targeting IL-2, IL-18, and IL-10 pathways. BMS retains ~20% equity plus milestone and royalty rights, essentially outsourcing development risk while maintaining upside. Daniel Lynch (boards of Xilio, Springworks, Blueprint) takes the helm as executive chairman and interim CEO. The move reflects BMS's strategic pivot to focus on assets that can "reset the immune system and promote tissue repair"—code for dumping incremental improvements. Bain's involvement follows their $3.3 billion acquisition of Japan's Mitsubishi Tanabe Pharma and completion of a $3 billion life sciences fund, signaling continued appetite for pharma carve-outs despite market headwinds.
Radiopharmaceutical startup Artbio secures $132M to scale proprietary lead-212 production
Clinical-stage Artbio raised $132 million in Series B funding co-led by Sofinnova and B Capital to advance its alpha radioligand therapies (ARTs) for cancer—bringing total funding to $245 million. The Cambridge-based company's AlphaDirect™ technology enables flexible, daily production of lead-212 without traditional nuclear reactors, addressing the critical challenge of radioligand degradation (minutes to days) that limits patient access. CEO Emanuele Ostuni (ex-Novartis CAR-T) plans to advance lead program AB001 for metastatic castration-resistant prostate cancer through Phase 2, competing directly with Novartis' blockbuster Pluvicto. The round attracted Qatar Investment Authority and Alexandria Venture Investments alongside existing backers F-Prime, Omega, and Third Rock. Founded on nearly a century of Norwegian radiation therapy research, Artbio has established manufacturing partnerships with Nucleus RadioPharma and others to build a distributed production network. Board Chair Ted Love emphasized the "scalable and sustainable process" as more than a dozen startups crowd into the hot radiopharmaceutical space. Ostuni acknowledged fundraising challenges—"investors have become a lot choosier"—but secured runway through 2027.
German pharma giant Boehringer partners with Re-Vana in $1B+ push to eliminate monthly eye injections
Boehringer Ingelheim formed a strategic collaboration with U.S./UK-based Re-Vana Therapeutics that could exceed $1 billion to develop extended-release therapies for retinal diseases. Re-Vana's injectable polymer platform promises to stretch treatment intervals from monthly injections to 6-12 months—addressing a major pain point for AMD and diabetic retinopathy patients who often skip appointments. The deal includes upfront cash (undisclosed), milestones, royalties, and potential for three programs annually. Boehringer brings four Phase 2 eye assets to the table, including a Sema3A antibody for diabetic retinopathy. Re-Vana CEO Michael O'Rourke called it a "transformational moment" as the Queen's University Belfast spinout (founded 2016) simultaneously raises its Series B. The partnership represents Boehringer's strategic push into ophthalmology—"fairly new for Boehringer" per global head Nedim Pipic—betting that reducing injection burden could fundamentally change how chronic eye diseases are managed.
Veteran biotech investor Frazier Life Sciences secures $1.3B for early-stage company creation
Palo Alto-based Frazier Life Sciences closed its 12th venture fund at $1.3 billion—one of only three major life sciences funds announced recently alongside Omega's $647M and Deerfield's $600M. The oversubscribed fund comes during a brutal fundraising environment where Q2 2025 biotech funding fell from $7B to $4.8B, marking one of the lowest quarterly totals in recent years. Managing Partner Patrick Heron and the team plan to form 4-5 new biotechs over the next 12 months while supporting existing portfolio companies through Series A and B rounds. The firm's track record includes Alpine Immune Sciences (acquired by Vertex for $4.9B) and Chinook Therapeutics (Novartis, $3.5B), with portfolio companies generating over 40 FDA-approved therapeutics since 2010. GP Dan Estes noted that "the vast majority of the fund is taken by investors who have been with us for multiple funds," suggesting confidence in the firm's company creation model despite "choppy" public markets. Frazier now manages over $3.9 billion across venture and public equity strategies.
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